At motorcycle manufacturer KTM, things happen in quick succession! Two days after it became clear that a deep restructuring was necessary and that fresh capital was also needed, the first cuts were announced on Thursday. Read here how hard the staff will be hit by the austerity package – and what the union thinks about it.
There have already been two waves of layoffs at KTM since December last year. In the first phase, around 300 jobs were saved as parts of production and development were moved to Asia. In August 2024 it was announced that another 200 employees would have to leave.
And now? The new austerity package is hitting the working population hard – both employees and employees. Some things are certain: the reduction from two shifts to one shift in motorcycle assembly will lead to the elimination of 300 jobs by the end of the year.
In January and February, 1,000 employees will stay at home
Motorcycle production comes to a complete standstill in January and February. 1,000 employees will then stay at home during these two months and receive the same wages as if they worked 30 hours a week.
At the same time, the remaining 4,000 employees who work in the company take a week’s vacation and then reduce their working week to 30 hours in January and February, also accepting a salary cut.
Pierer Mobility AG confirmed these first measures, and employees were also informed about them on Thursday. However, it is unclear how many administrative employees will have to leave. The holding company of KTM AG has announced that adjustments will be made in the area of overheads. The people of Innviertel now say that this will be announced at the right time.
How does the association view the drastic measures at KTM? “I was afraid that if production was interrupted, the employees would be fired. I can live with such an agreement, even if the business risk is passed on to the employee,” says Michael Seemayer, State Secretary of PRO-GE in Upper Austria. A state-funded short-time working model would be much better, he says. However, companies do not have access to this because the employment service has been asked to take restrictive action.
Ask for a social plan
Seemayer sees the need for action for those from whom KTM now wants to separate: “There was no social plan during the previous waves of austerity. But for those who have to leave now, it is difficult to find a job again quickly. Jobs are being cut everywhere.”
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
